Spackman Entertainment Group Announces Disposal of Studio Take Co., Ltd.

Key Highlights and Investor-Relevant Details

Spackman Entertainment Group Limited (“Spackman” or “the Company”) has announced a major strategic transaction: the proposed disposal of its entire shareholding interest in the loss-making subsidiary, Studio Take Co., Ltd. (“Studio Take”). This deal is structured as a sale of 100% equity to seasoned film producer Mr. Shin Kyung Chul for a nominal consideration of US\$1 (approximately S\$1.29), with significant implications for the Group’s financial health and future strategy.

Main Points of the Disposal

• Transaction Details: Spackman will transfer all shares of Studio Take to Mr. Shin Kyung Chul, who has an extensive background in Korean and Hollywood film production. The transaction will see Studio Take cease to be a subsidiary of the Group.
• Consideration: The sale price is set at US\$1, reflecting the dire financial situation of Studio Take and the outcome of arm’s length negotiations. All debts and liabilities of Studio Take will be assumed by the Purchaser.
• Rationale: Studio Take has been a significant drag on the Group’s financials, posting a net loss of US\$1,349,532 and sitting in a net liability position of US\$1,953,922 as of 30 September 2025. Its latest film, YOU ARE THE APPLE OF MY EYE (2025), failed to break even at the Korean box office.
  This disposal is aimed at insulating the Group from further losses and debt obligations, strengthening the balance sheet, and allowing Spackman to refocus on quality film productions through its other subsidiaries.
• Gain on Disposal: The Group expects a gain of approximately US\$1,953,923 (S\$2,515,285), calculated as the excess of the consideration over the net book value of Studio Take.
• Operational Impact: Film production and investment functions of Studio Take will be transferred to Take Pictures Pte. Ltd., a wholly owned subsidiary. Key personnel, including veteran producer Mr. Song Dae-chan, will remain with the Group to continue leading its film production efforts.
• Financial Effects:
  • No new shares will be issued as part of the transaction.
  • Post-disposal, Net Tangible Assets (NTA) per Share will increase from US\$0.91 to US\$1.02 (S\$1.17 to S\$1.31).
  • Earnings/(Loss) per Share will improve significantly from a loss of US\$(0.00) to a gain of US\$0.11 (S\$0.14).
• Classification: The transaction is deemed a “Disclosable Transaction” under SGX Catalist Rules, and is required to be announced due to its financial impact and the fact that it involves the disposal of a loss-making asset.
• No Profit Guarantee or Forecast: The Company has not provided any profit guarantee or forecast in connection with the transaction.
• Director and Shareholder Interests: There are no conflicts of interest; no director or substantial shareholder has any interest in the disposal beyond their shareholding in Spackman.
• Further Announcements: The Company will update shareholders on material developments related to the disposal.
• Caution: Completion of the disposal is subject to certain conditions, including Board and shareholder approvals, and there is no certainty that the transaction will be completed.

Potential Price-Sensitive Implications for Shareholders

• Significant Improvement in Financial Position: With the disposal, Spackman will eliminate a major source of losses and liabilities, leading to a marked increase in NTA and a swing to profitability. This could positively influence share price.
• Strategic Refocus: The Group will be able to concentrate on profitable film production and investment, leveraging its remaining subsidiaries and partnerships, including a 43.88% stake in Spackman Media Group and a 20% stake in The Makers Studio.
• Risk Reduction: By transferring all of Studio Take’s debts and liabilities to the Purchaser, the Group’s risk profile and exposure to further financial distress will be materially reduced.
• Shareholder Value: The transaction is aimed at stabilizing the Group’s fiscal health and delivering greater value to shareholders, which may be viewed positively by the market.
• Cautionary Note: As there is no guarantee that the disposal will proceed to completion, investors should exercise caution and closely monitor further announcements.

What Shareholders Should Do

• Review all updates and announcements from the Company regarding the disposal.
• Consult professional advisors if in doubt about investment decisions related to Spackman shares.
• Be aware of potential volatility in share price given the material improvement in financial metrics and strategic direction post-disposal.

Disclaimer

This article is based on publicly disclosed information by Spackman Entertainment Group and does not constitute financial advice or an offer to buy or sell securities. Investors should consult their professional advisers and make their own independent assessment before making investment decisions. The completion of the proposed disposal is subject to certain conditions and is not guaranteed.

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